Financial and operational KPIs
Financial KPIs
| Year ended 31 March | ||||
|---|---|---|---|---|
| KPI | Purpose of KPI | 2008 | 2007 | 2006 |
| Group | ||||
| Revenue and related organic growth(2) | Measure of the Group’s success in growing revenue given its strategic objectives to stimulate revenue in the Europe region and to deliver strong growth in emerging markets. Also used in determining management’s remuneration. | £35,478m 4.2% |
£31,104m 4.3% |
£29,350m 7.5% |
| Adjusted operating profit and related organic growth(2) | Measure used for the assessment of operating performance as it represents the operating profitability of the Group excluding non-operating income of associates, impairment losses and other income and expense. Also used in determining management’s remuneration. | £10,075m 5.7% |
£9,531m 4.2% |
£9,399m 11.8% |
| Free cash flow(2) | Provides an evaluation of the cash generated by the Group’s operations and available for reinvestment,shareholder returns or debt reduction. Also used in determining management’s remuneration. | £5,540m | £6,119m | £7,119m |
| Capitalised fixed asset additions | Measure of the Group’s investment in capital expenditure to deliver services to customers. | £5,075m | £4,208m | £4,005m |
| Adjusted earnings per share(2) | Measure of the Group’s operating performance after taking into account taxation and financing costs. Impacts the level of dividend payout as the Group’s dividend policy is based on adjusted earnings per share. Also used in determining management’s remuneration. | 12.50p | 11.26p | 10.11p |
Operational KPIs
| Year ended 31 March | ||||
|---|---|---|---|---|
| KPI | Purpose of KPI | 2008 | 2007 | 2006 |
| Group | ||||
| Mobile customer net additions | Measure of the Group’s success at attracting new and retaining existing customers. | 40.5m | 23.9m | 26.6m |
| 3G registered devices and related organic growth | Measure of the number of 3G devices, which are keyenablers of future data revenue growth. | 27.0m 67.5% |
15.9m 105.6% |
7.9m 461.1% |
| Customer Delight Index | Measure of customer satisfaction across the Group’s controlled markets and its jointly controlled market in Italy. Also used in determining management’s remuneration. | 73.1 | 70.6 | 69.9 |
| Notes: | |
|---|---|
| (1) | Definition of the key terms are provided in Definitions of Terms. |
| (2) | See Non-GAAP information for further details on the use of non-GAAP measure to the most comparable GAAP measure. |
| (3) | Measurement of total communications revenue began on 1 April 2006, following the launch of current strategy in May 2006. |
| (4) | KPI includes the results of common functions. For the year ended 31 March 2006, the KPI excludes the impact of Vodafone Sweden which was disposed of in January 2006. |